Volex PLC Joint Venture (4049D)
06 July 2016 - 7:21PM
UK Regulatory
TIDMVLX
RNS Number : 4049D
Volex PLC
06 July 2016
6 July 2016
Volex PLC
Joint Venture with Joinsoon Electronics Mfg. Co. Ltd
Background to the Joint Venture
Volex plc ("Volex"), one of the world's largest power cord and
harness assemblers, announces that it has formed a joint venture
with a Taiwan-based manufacturer, Joinsoon Electronics Mfg. Co. Ltd
("Joinsoon") to engage in the development, manufacture and
marketing of Volex-branded AC raw cables.
According to the agreement, Joinsoon and Volex will form a joint
venture holding company in Taiwan with a manufacturing facility
located in Guangdong, China. The joint venture will be named
Volex-JEM Cable Precision (Dongguan) Co., Ltd ("The JV Company"),
and expects to start production immediately on receipt of the
necessary safety approvals.
Benefits to the Joint Venture
The agreement enables Volex to begin production of raw cable
used to assemble power cables, and will enable Volex to offer its
customers a branded power cable complete with Volex safety
certificates, at a highly competitive price. It is estimated it
will take 12 to 18 months for the benefits of this joint venture to
be fully reflected in Volex's cost structure.
Commenting on today's announcement, Nat Rothschild, Executive
Chairman of Volex said, "Today's announcement closes the gap
between Volex and its major competitors. We are currently the only
major power cable assembler without our own captive source of
cable, and by partnering with one of the lowest-cost cable
producers we can achieve a cost effective route to vertical
integration, and significantly improve our cost structure in this
highly competitive industry".
The agreement also envisages further future partnership between
Joinsoon and Volex.
Commenting further, Richard Huang, founder & CEO of
Joinsoon, said, "Our Volex branded power cable is just the first
stage in an even closer cooperation between our two companies. We
hope quickly to expand into new areas such as the production of PVC
resin as soon as possible".
About Volex
For over 100 years, Volex has been providing customers in the
telecom, data-centre, industrial, consumer and medical sectors with
a variety of power cords, industry standard cable assemblies,
high-speed cable assemblies and connectors. With revenues of $376
million in the year ended 3 April 2016, and a global manufacturing
footprint, Volex remains one of the world's largest power cord and
harness assemblers (www.volex.com).
About Joinsoon
Established in 1977, Joinsoon Electronics Manufacturing Co.,
Ltd. (JEM) is one of the world's leading providers of
interconnection products and electronics manufacturing services.
The company designs and manufactures a broad range of signal
cables, medical lead-wires, connectors, computer peripheral
antennas, and electronics manufacturing services specializing in
data storage devices. Joinsoon has been continually growing,
expanding by vertical integration, and upgraded with the latest
technology to satisfy the world market and customer needs. The 2015
revenues of JEM were $67 million, and JEM is listed on the
Taiwanese stock exchange under the symbol, 3322 TT
(www.jem.com.tw).
About Volex-JEM Cable Precision (Dongguan) Co., Ltd
Volex-JEM Cable Precision (Dongguan) Co., Ltd will engage in the
development and manufacture of cables comprising various
international safety standards including UL, PSE, CCC and VDE,
principally used in AC power supply cords and cord sets. The JV
Company's manufacturing capabilities will include copper wire
drawing, wire stranding, cable extrusion and testing with an annual
capacity of at least 24,000km cables, in the initial phase.
Enquiries:
Volex plc
Daren Morris, Group CFO & Company Secretary +44 208 017 3232
Joinsoon Electronics Mfg. Co. Ltd
Jimmy Lin, General Manager +886 2 2698 4882
This information is provided by RNS
The company news service from the London Stock Exchange
END
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